Brazil currently has no plans to capitalize Petrobras despite market fears the state-run oil company could need fresh capital after Moody's cut its credit rating to junk, two government officials told Reuters on Wednesday.

Moody's Investors Service cut Petrobras' rating late on Tuesday by two notches to Ba2 from an investment grade Baa3 and kept the firm on review for further downgrade, citing concerns over an ongoing corruption scandal and liquidity pressures.

"We have no plans to capitalize Petrobras," said one of the officials, who requested anonymity. "The government is not planning to make any cash transfers to Petrobras."

The same official added that the government was worried that the Petrobras downgrade could end up having a contagion effect on Brazil's sovereign rating.

To counteract that, the government is planing to unveil new fiscal savings measures, the source said.

"The government has not yet showed all the measures that are under discussion. The ratings agencies will probably like some of the measures that we will release soon," said the official, who has been briefed on the plans. "At this moment, we are working to maintain the country's rating."

The official declined to provide any specifics on the measures, but said they could be announced in the coming days.

Moody's was the first of the big-three ratings agencies to cut Petrobras' credit rating to junk level. Both Fitch and Standard & Poor's currently have the oil company rated at BBB-minus, the lowest investment-grade level.

Fitch has placed that rating on watch negative, meaning a downgrade is possible in the next few months.

A second downgrade to junk may have a meaningful impact on Petrobras' bonds and stocks as many fund managers are only allowed to invest in companies that are rated investment grade by at least two ratings agencies.


(By Alonso Soto; Additional reporting by Luciana Otoni; Editing by Chizu Nomiyama and Alan Crosby)